Capital Markets

Kenya Re seeks buyer for Kisumu Reinsurance Plaza

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Sacked Kenya Re managing director Jadiah Mwarania. FILE PHOTO | NMG

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Summary

  • The eight-storey commercial property—which is one of Kisumu's most iconic buildings— is situated at the junction of Jomo Kenyatta Highway and Oginga Odinga Street in the town centre, sitting on 2.23 acres of land.
  • Kenya Re first announced the planned sale in December 8, last year.
  • It invited interested firms to bid for purchase this week.

Kenya Re-Insurance Corporation #ticker:KNRE (Kenya Re) has put up Reinsurance Plaza building in Kisumu for sale, expecting to receive at least Sh1 billion from the disposal.

The eight-storey commercial property—which is one of Kisumu's most iconic buildings— is situated at the junction of Jomo Kenyatta Highway and Oginga Odinga Street in the town centre, sitting on 2.23 acres of land.

"The property and the developments therein are being offered for sale on ‘as is where is’ basis and is subject to a reserve price of Sh1 billion for the whole lot, Kisumu Municipality/ Block 7/378," Kenya Re said in tender documents seen by the Business Daily.

Kenya Re first announced the planned sale in December 8, last year. It invited interested firms to bid for purchase this week.

"The successful bidder will be required to assume ownership of the property within 14 days after making the final payment," it said in a tender notice.

The firm’s earnings for the current year ending December could be boosted if significant gains are realised from the sale.

Kenya Re in 2019 booked a net profit of Sh3.97 billion, up from Sh2.29 billion posted the previous year, translating to a growth of 73 per cent on the back of properties revaluation.

"The reason (for sale) is strategic reinvestment," Kenya Re chief executive Jadiah Mwaraniah said in response to the Business Daily queries without divulging further details.

Kenya Re is locked in court battles over ownership of several of its prime properties worth Sh1.6 billion.

An annual report by Kenya Re, shows that the corporation is seeking to reclaim four investment properties located in Nairobi’s Ngong Road, Kiambu Road, Jomo Kenyatta International Airport (JKIA) and Shanzu in Mombasa.